Trans-Atlantic Exchange Rate Report for July 19th – 24th

By: Matthew Natof, The Quinnipiac University Global Economics Research Team

Trans-Atlantic Currencies Index

 Source: Yahoo and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency) and then indexed to be 100 at the start of the period.

From July 19th – 24th, the Trans-Atlantic currencies all ended positively. The Canadian dollar (CAD) depreciated in the latter half of the week, finishing at this week’s low of 0.45%. The Swiss franc (CHF) appreciated heavily this week, ending at this week’s high of 1.32%. The euro (EUR) steadily appreciated, landing just above the Canadian dollar at 0.51%. The pound (GBP) depreciated early but appreciated during the second half of the week, ending at 0.85%. 

Trans-Atlantic Historical Trends

Source: Eurostat and own calculations. Exchange rates are inverted to be USD per local currency (i.e., an increase indicates a stronger domestic currency. The center line is a rolling three-month average. The upper and lower boundaries are the average plus and average minus one standard deviation, respectively, for the same three-month period.

From July 19th – 24th, the Trans-Atlantic currencies followed different paths. The Canadian dollar (CAD) held relatively steady this week, ending above its lower bound. The Swiss franc (CHF) depreciated for most of the week, falling well below its lower bound. The euro (EUR) fluctuated this week and settled just beneath its lower bound. The British pound (GBP) fell steadily at the start of the week, then recovered, finishing below its three-month average.

Additional Reading

Dollar hits new 40-year high versus yen, euro softer after ECB stands pat on rates

The article, published on July 22^nd, explains that the euro weakened after the European Central Bank left interest rates unchanged. Also, oil prices rose because of geopolitical tensions. Investors reacted by shifting money between major currencies as they adjusted their expectations for future interest rates and economic growth.